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Foreign exchange spread calculation method

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The price of buying and selling is subject to change at any time, but the price of buying and selling is basically different. This is why traders are always making money. The purpose of traders is to buy high prices at low prices, so that the prices sold are always high. The price to buy. There are many factors that can influence the spread of money, such as the demand for a currency, the amount of money on the market, the competitiveness of money, and the liquidity of money. In general, the more active and larger the field provides the lower the spread, for example: Euro/US and GBP/US spreads are lower than other non-major currencies. . On the other hand, the smaller the field and the smaller the currency flow, the higher the spread, and the spread of the goods offered by the trader is an important factor affecting whether the customer chooses the trader. Point value calculation Point value = transaction volume per unit * minimum jitter unit * (the latter currency / USD) The unit is US dollars. For example, according to the current quotation: For example, the point value of EURUSD=100000*0.0001*(USD/USD)=10 USDCHCH point value=100000*0.0001*(CHF/USD)=10/USD/CHF=10/0.9245 =10.82 USD USDJPY point value=100000*0.01*(JPY/USD)=1000/USD/JPY=1000/81.6775=12.24 USDGGPB point value=100000*0.0001*(GPB/USD)=10*1.61=16.1 US dollar GPBCHF point value = 100,000 * 0.0001 * (CHF / USD) = 10 / USD / CHF = 10 / 0.9245 = 10.82 US dollars can be seen, the point value is only related to the latter currency of the currency pair. The minimum unit "hand" for margin trading. When we understand what a spread is, what we need to understand is the unit "hand" that is closely related to the spread, the smallest unit of margin trading. In the case of a standard account, the trading unit provided by the broker on the general network is 1 lot (lot) and the volume is 100,000 base currency. In the case of a mini account, the deal in one hand is 1/10 of the standard account. For example, the actual transaction of USD/JPY is equivalent to actually buying (selling) 100,000 US dollars/day. If it is a lot of EUR/USD, the actual volume is equivalent to Europe/US with a value of 100,000 Euros.

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